Jack Dorsey says he's cutting nearly half of his staff — 4,000 jobs — at Block. Read the memo.
Business Insider
February 26, 2026
AI-Generated Deep Dive Summary
Jack Dorsey, CEO of Block (formerly Square), announced a significant layoff affecting nearly half of the company's workforce, with over 4,000 employees being let go. In a candid memo shared on X, Dorsey explained that this move was not due to financial struggles but rather an intentional shift toward smaller teams and AI-driven tools to enhance efficiency and innovation. Block, which owns several high-profile brands including Cash App and Afterpay, is restructuring to align with its vision of leveraging intelligence tools for growth. Shares of Block surged 23% in after-hours trading following the announcement.
Dorsey emphasized that this decision was made to avoid prolonged cuts, which he believes harm morale and trust. By acting swiftly, he aims to create a more agile and focused organization capable of thriving independently rather than reacting to market pressures. The company plans to support those affected with severance packages, including 20 weeks of salary, health care for six months, and a $5,000 transition stipend (or local equivalent). Dorsey also stressed the importance of maintaining open communication during this transition.
The layoffs reflect Block's broader strategy to streamline operations and prioritize AI-driven innovation. By reducing its workforce, the company hopes to foster a more collaborative and efficient environment. This approach aligns with growing trends in tech where smaller teams and advanced tools are being used to drive rapid progress. While the decision carries risks, Dorsey believes it is essential for long-term success and customer satisfaction.
For readers interested in business strategy, this move highlights how companies are adapting to technological advancements by redefining traditional structures. It also underscores the importance of clear communication during significant organizational changes, even when those changes involve difficult decisions like layoffs. Block's approach may serve as a model for other businesses navigating similar transitions.
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Originally published on Business Insider on 2/26/2026